Understanding Electrical Quotes vs Estimates
When hiring a electrical professional, you'll encounter two types of pricing documents: quotes and estimates. Understanding the difference can save you thousands and protect you legally under Australian Consumer Law (ACL).
The Key Differences
Quote (Fixed Price)
- Legally binding price commitment
- Protected under Australian Consumer Law (ACL)
- Changes require a formal Variation
- Contractor absorbs cost overruns
Estimate (Approximate)
- Non-binding price indication
- Can vary by 10-15% or more
- Final cost determined after work
- You absorb unexpected costs
Your Legal Protection in AU
Under Australian Consumer Law (ACL), a written quote is generally considered a binding offer. Once you accept it, the contractor cannot increase the price without your written agreement through a Variation. The Australian Competition and Consumer Commission (ACCC) can help if a contractor tries to charge more than the quoted amount.
Always ensure your quote includes the contractor's ABN and clearly states whether GST is included in the price.
Local Insight for AU
In Australia, always verify a tradesperson's license through your state's licensing authority (e.g., NSW Fair Trading, VBA in Victoria). Unlicensed work may void your home insurance and leave you without recourse if something goes wrong. The ACCC actively pursues unlicensed operators.
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